New DIary, Conflicted MFW

Good morning everyone,

I have had a diary here before but have been away for a while and need to return/reboot MFW lifestyle... but conflicted in a few ways ....

I used to overpay relatively frequently can't remember exact figures but will dig them out at some point - DH was supportive and at times keen but looking back it was def me that lead the MFW plan. Managed to get married which didn't cost us very much/as much as it could have done under 5k including honeymoon again can't remember excat figures, bought our 3 bed terrace for £183,000 in 2008 (live in the South East) and renovated it to make it habitable using savings and still had an emergency fund spare etc so all was good.
Had DD1 and budgetted carefully for maternity leave managing not to spend any of the second fund we set up pre baby for big expenditure, didn't buy much compared to most friends etc and again all was going well.
Fast forward two years when I've gone back to work and earning good money for hours that I do and have been unwell since DD1 born end 2013... taken my eye off the finanical ball and in that time we have:
- sold a perfectly good car and now have a lovely one on finance - I love the car and the deal was comparitively good but not really MFW style!
- extended into the loft adding 40k to the mortgage - have created a beautiful loft room, study and en suite.
- maxed out £5k )% credit card to cover tight times whilst doing loft and going on too many holidays.

this month and last tbh we have ended up tight for money, crazy when we earn as a household £3,900 a month :eek::eek::eek:
however loking back on our holiday expenditure over the last year alone we are probably still paying for that, add in the increased mortgage, new car and general spending increase and we're in this position of running out of money - still saving quite a bit for various funds e.g car repairs but crazy how the money seems to be disappearing.

Now DH wants us to move to a 4 bed detached which will add £100,000 to the mortgage. Tbh if we sell at the right price and buy at the right price we will be able to afford it but it wil be a bit of a stretch plus planning to send DD1 to private school as local schools aren't that great and I get a crazy good discount.

So feeling conflicted as not sure my lifestyle is that of a MFW any more but used to love it and am keen to get back to MFW ways as I know its got to be apid off so anything we manage is a good thing to save on interest.

Also this morning realised all those OPs made in the past rediced monthly amount and we didnt save the difference or move to standing order so in effect what we saved we then spent rather than saving what we used to pay off to make an even bigger dent - lessons learnt - SO the way forward.

In additon I used to be on top of knowing what our mortgage was but since loft was extended DH remortgaged for that project and we have new mortgage lender without internet details and I feel completely out of touch with mortgage and interest amount etc

On the plus side we have ditched SKY TV which feels like the devil so that will save us money but don't have an aerial since the loft so will probably be TV free too - hoping that will free up some time to focus on other things.

Hoping for some spport along the way as think we'll need it. Goals are in limbo in case of moving etc

Happy Sunday :):):)
Mortgage = £330,000
Grateful for the roof over my head and the money to buy food ❤️
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Replies

  • PennyJarPennyJar Forumite
    114 Posts
    GM Anna,

    We too just had DD1 and are keen to buy 2nd home and are starting OPs to improve term of the mortgage and LTV.

    I've just started a diary 'Penny by penny...brick by brick' to help me stay motivated on achieving our goals - I think this site is brilliant because it joins you up with like-minded people who are so encouraging and supportive.

    Me and DH were the same in that our net income after outgoings meant we should of had a substantial pot of savings by now...but like you even though we have no real debt apart from mortgage we were living month to month - but it's surprising with a quick financial review, overhaul and plan suddenly everything seems really manageable and being frugal is actually enjoyable - we were getting a bit tired of the rat race...shopping, coffee shops, expensive holidays etc. don't get me wrong we do like nice things, but our main focus is getting our dream family home which we can enjoy.

    All the best with your journey - I think you'll do really well! Will subscribe to your diary for some encouragement myself.

    PennyJar
    Debt Free - 2011 (£15, 000) :T | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive :money: fan - thank you for changing the game!
  • AnnaBethAnnaBeth Forumite
    138 Posts
    Tenth Anniversary 100 Posts Combo Breaker
    Thanks Penny Jar, I will subscribe to your diary too.

    Just heard the 4 bed we wanted - there was only one in the same road as Mum and Dad - has been sold STC so may well be staying put for a while longer.

    Maybe time to focus on the spending saving a pot for if we do move or paying off existing mortgage either way I am back on the MFW band wagon.
    Mortgage = £330,000
    Grateful for the roof over my head and the money to buy food ❤️
  • AnnaBethAnnaBeth Forumite
    138 Posts
    Tenth Anniversary 100 Posts Combo Breaker
    So have checked and our mortgage is £162,245.57 which for the South East doesn't feel too much but when I compare it to this forum it seems massive!!!
    Scared by overpayment calculator would like to make payments monthly of £650 to bring the end date down by 17 years but think that won't be achieveable esp if we have another baby etc but could be a good aim when able to make it.
    I love the planning side but the execution seems to elude me but because the planning takes so long I feel virtuous time to put my money where my mouth is .....
    Mortgage = £330,000
    Grateful for the roof over my head and the money to buy food ❤️
  • smallholdingsistersmallholdingsister Forumite
    4K Posts
    ✭✭✭✭
    Your mortgage is about the same as ours.
    Good luck!
  • PennyJarPennyJar Forumite
    114 Posts
    You'll do it this time round - start with bite sized, really achievable small goals which you know your going to easily smash - to give yourself a kick start confidence boost.

    :beer:
    Debt Free - 2011 (£15, 000) :T | MFiT - T4 #78 £0/£20,000 (Mortgage reduction target)
    Mortgage Free Goal - 2026 (£101, 062) | #198 Emergency Fund Challenge £500/£1000
    Massive :money: fan - thank you for changing the game!
  • AnnaBethAnnaBeth Forumite
    138 Posts
    Tenth Anniversary 100 Posts Combo Breaker
    Thanks PennyJar I'm going to take your advice and start with £150 a month as an achievable goal.
    Managed to stick to not spending as much as usual on holiday which at times was a challenge.

    Have just edited my online banking account names to include the interest they pay and to my horror have been foolishly setting aside some money for chrismas etc and putting the larger amounts into some of the worse savings account in comparison to others I hold with the same bank. Have sorted that out now so even if the interest is small at least it is stacked in my favour.

    Have agreed with DH to make an overpayment of £1,000 this afternoon instead of leaving the £1,000 in a poor rate ISA that is worse than useless. Please to be making an overpayment again.

    Hope evryone is enjoying the sun.
    Mortgage = £330,000
    Grateful for the roof over my head and the money to buy food ❤️
  • AnnaBethAnnaBeth Forumite
    138 Posts
    Tenth Anniversary 100 Posts Combo Breaker
    Made the £1,00 overpayment. My mortgage company if you pay over £1,000 as an overpayment alwasy reduce the monthly amount and only reconsider the loan length if you apply for it to be shortened, little bit irritating but will just save the difference and add it to the mortgage overpayment fund.
    Mortgage = £330,000
    Grateful for the roof over my head and the money to buy food ❤️
  • AnnaBethAnnaBeth Forumite
    138 Posts
    Tenth Anniversary 100 Posts Combo Breaker
    Despite making that lovely large OP this week finding my finances irritating with running down to £60 in current account despite thinking we were doing well. Think I must have some sort of confusion these days i always think i've got lots of spare cash to save and then it disappears - prob in part due to working part time and having a 3 year old. I'm annoying myself with my attitude as i know i'm in a very fortunate position and clued up with money but feeling very disorganised that any of this comes as a surprise to me - oh well onwards and upwards!
    Mortgage = £330,000
    Grateful for the roof over my head and the money to buy food ❤️
  • Keep going - don't look at the mountain, just focus on each step one at a time.

    Can you call the lender and ask them to retain payments at their usual level? They may do one thing automatically but can you ask them to do otherwise? Just a thought.
    :)
  • AnnaBethAnnaBeth Forumite
    138 Posts
    Tenth Anniversary 100 Posts Combo Breaker
    Thanks ZoPig I tried but sadly not, I'll allow for it and just save the difference myself.

    About to launch into the world of the bullet journal as have found its all over social media looked into it and think it would be a really good way to help focus the mind on goals and achievements so of course will include financial goals as well. Would be interested to hear if anyone else has given it a go already. I'll be sure to post about it on here if it seems like it might be a useful tool to use.

    Managed to stick to keeping spending low by a) going to work and b) potty training my small person so I'm scared to leave the house! Have been paid today which is always exciting!

    Will keep plodding with the saving and planning.
    Mortgage = £330,000
    Grateful for the roof over my head and the money to buy food ❤️
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